Dhaka, Bangladesh (BBN) - The primary dealers (PDs) have urged the government to restructure auction amount of the bonds and treasury bills (T-bills) to minimize fund mismatch.
The Primary Dealers Bangladesh Limited (PDBL) has already submitted a letter to the finance ministry requesting its Secretary to restructure auction amount of the bonds and of T-bills at the ratio of 50:50 instead of the existing 92.5:7.5.
"We've requested the government and the central bank to review the amount of auction ratio of the securities, which will help us managing funds properly," a senior member of the PDBL said, adding that the PDs are now facing mismatch in their asset-liability seriously because of financing in the government's long-term securities with short-term source of funds.
The central bank of Bangladesh has already dispatched a letter to the finance ministry in this connection giving opinions in favour of the PDBL proposal.
"It should be revised to restore liquidity position of the banks, particularly the PDs," a senior official of the Bangladesh Bank (BB), the country’s central bank, told BBN.
He also said the issue would be discussed at the next meeting, scheduled to be held by the end of this month, of the cash and debt management committee (CDMC).
Currently, three T-bills are being transacted through auctions to adjust the government borrowing from the banking system.
The T-bills have 91-day, 182-day and 364-day maturity periods.
On the other hand, four government bonds - 5-year, 10-year, 15-year and 20-year - are being traded in the markets.
The central bank earlier selected 15 PDs -- 12 banks and three non-banking financial institutions (NBFIs) - to deal with the government-approved securities in the secondary market.
BBN/SSR/AD-09Mar12-3:00 pm (BST)
